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Southwest Region

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Leisurely Growth in Southwest Minnesota

11/25/2024 11:42:23 AM

Luke Greiner, Amanda O'Connell

With nearly 14,750 jobs at more than 1,100 establishments in the second quarter of 2024, the Leisure & Hospitality industry helps make people feel at home in Southwest Minnesota. With 8.4% of total employment, one in every 12 jobs in the region is in Leisure & Hospitality. However, that is the lowest share of the six regions in the state, and 1.5% lower than the state as a whole. Despite the lower concentration, after adding 527 jobs over the past year, Southwest Minnesota saw the fastest employment gain in Leisure & Hospitality in the state, well ahead of the other five regions (see Figure 1).

Figure 1: Leisure & Hospitality as a Percent of Total Employment and Job Change, Quarter 2 2024 - Quarter 2 2024

With 880 firms providing more than 12,500 jobs, Accommodation & Food Services is the largest sector within Leisure & Hospitality after gaining nearly 450 jobs over the past year. At a more detailed level, 11,680 of those jobs are at Food Services & Drinking Places. More specifically, just under 10,000 of those jobs are in Restaurants, split almost evenly between Full-Service and Limited-Service Restaurants, which includes Fast Food.

Rising demand from customers continued to boost employment levels at Food Services & Drinking Places, with Restaurants adding 425 jobs over the year, Special Food Services–which includes cafeteria food service contractors for hospitals, colleges and universities, and government–gaining 134 jobs, and Drinking Places embracing 86 more jobs. In contrast, Accommodation cut 196 jobs over the year, as demand for hotel stays declined in the region (see Table 1). 

Table 1. Leisure & Hospitality Employment in Southwest Minnesota

Qtr. 2 2024

Q2 2023 – Q2 2024 Change in Jobs

NAICS Code NAICS Industry Title Number of Firms Number of Jobs Numeric Percent
  Total, All Industries 13,015 174,345 -313 -0.2%
  Leisure & Hospitality 1,116 14,728 +527 +3.7%
71 Arts, Entertainment, & Recreation 236 2,200 +78 +3.7%
711 Performing Arts, Spectator Sports, & Related Industries 46 205 +5 +2.5%
712 Museums, Historical Sites, & Similar Institution 37 157 +3 +1.9%
713 Amusement, Gambling, & Recreation Industries 153 1,837 +70 +4.0%
71321 Casinos (except Casino Hotels)  1 269 -5 -1.8%
7139 Other Amusement & Recreation Industries 146 1,534 +78 +5.4%
71391 Golf Courses & Country Clubs 48 781 +44 +6.0%
71394 Fitness & Recreational Sports Centers 40 317 +16 +5.3%
71395 Bowling Centers 16 184 +20 +12.2%
71399 All Other Amusement & Recreation Industries 38 237 -6 -2.5%
72 Accommodation & Food Services 880 12,528 +449 +3.7%
721 Accommodation 85 848 -196 -18.8%
7211 Traveler Accommodation 73 772 -187 -19.5%
7212 RV (Recreational Vehicle) Parks & Recreational Camps 9 59 -1 -1.7%
722 Food Services & Drinking Places 795 11,680 +645 +5.8%
7223 Special Food Services 47 649 +134 +26.0%
7224 Drinking Places (Alcoholic Beverages) 153 1,099 +86 +8.5%
7225 Restaurants 595 9,931 +425 +4.5%
722511 Full-Service Restaurants 289 4,427 +222 +5.3%
722513 Limited-Service Restaurants 254 4,921 +137 +2.9%
722514 Cafeterias, Grill Buffets, & Buffets 3 44 -2 -4.3%
722515 Snack & Nonalcoholic Beverage Bars 49 538 +68 +14.5%
Source: DEED Quarterly Census of Employment & Wages

With more than 1,100 job openings in 2023 and high turnover, the Leisure & Hospitality industry is very welcoming to new workers. Though wages are typically lower in these jobs, so are the requirements for entry, with most jobs available to anyone regardless of educational attainment. The vast majority of jobs can be started with a high school diploma or less, and typically require just short-term on-the-job training, making it easy for jobseekers to get placed. They also tend to offer flexible hours and part-time schedules, which many workers may prefer. Some examples of jobs in highest demand in Leisure & Hospitality include:

For more information on Leisure & Hospitality employment in Southwest Minnesota, contact Luke Greiner at luke.greiner@state.mn.us or Amanda O'Connell at amanda.oconnell@state.mn.us.

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